Tag Archives: China

Business/Economics, International, Opinion, U.S.

China continues to sell off U.S. bonds

China is the biggest buyer of U.S. sovereign debt (bonds), but has been selling off that debt at a steady pace. In February China sold off $1.15 trillion (yes, trillion) in U.S. bonds.

Chinese officials say the sell off of U.S. bonds could continue for another two months, or as long as the Federal Reserve continues with its quantitative easing (QE) policies.

According to the U.S. Treasury Department, China holds $4.47 trillion in U.S. sovereign debt.  China wants to cut it to less than $1 trillion.  Even then, Chinese officials say holding that much U.S. debt is only good for the short run.  I guess they don’t think the future looks very bright for the United States.

Business/Economics, International, Opinion, U.S.

China refuses to pay U.S. debt

“The U.S. wants China to pay its economic bills by raising the value of the yuan. This is preposterous!”-Zhang Yansheng, Institute of Foreign Economics

Officials from China and the United States are meeting this week to discuss, what else, economic issues.  Many U.S. officials want the Chinese to raise the value of their money, the yuan, in order to help the U.S. dollar.  But the Chinese say bullsh*t!

Ma Xiaoye, of the China Foundation for International & Strategic Studies, says U.S. leaders created the economic problems, so “How can the U.S. count on a foreign currency to solve them?” Zhang Yansheng added “The U.S. should take responsibility for its own policies, instead of asking China to pay for it.”

The U.S. wants China to raise the value of their money, against the U.S. dollar, to help fight inflation in the United States.

Chinese analysts say the problem is that every time the Federal Reserve implements a quantitative easing (QE) policy, it sends “hot money” into the world economy creating “market bubbles”, which is what China does not want.

Maybe if the Federal Reserve stops issuing money that really isn’t there, the Chinese might decide to raise the value of their money.

Business/Economics, International, U.S.

China wants to move Cinese companies to U.S., but says U.S. blocking them

“As the U.S. government continues to request accessibility to the Chinese market for its firms, we now raise a similar request on behalf of Chinese firms.”-Zhu Guangyao, Vice Finance Minister

For decades U.S. companies have been shipping off factories, and jobs, to China.  Now China says the United States is blocking their attempts to bring factories and jobs to the U.S.

“We have received many complaints from Chinese companies that have met discrimination as they try to invest in the United States, even though the U.S. side has repeatedly stated that Chinese companies are welcome.”- Zhu Guangyao, Vice Finance Minister


International, U.S.

Former Ronald Reagan official says this is all about World War 3

“Washington is all for invading Libya and is putting more and more pressure to intervene in Syria because we want to… clear China and Russia out of the Mediterranean.”

“Those two countries are just in the way of American hegemony in the Mediterranean and certainly the Americans do not want a powerful Russian fleet stationed there and they certainly don’t want China drawing energy resources.”

“Once Russia and China come to the conclusion that the Americans simply cannot be dealt with in any rational way and are determined to somehow subdue them and do them damage, all kinds of escalations can result. This is the real danger and we’re risking a major war.” Dr. Paul Craig Roberts, former Assistant Secretary of the Treasury under President Ronald Reagan, and former editor of the Wall Street Journal

Business/Economics, International

Ford closing more plants, “just in time” global economic supply system continues to strike

Ford is temporarily closing plants in Taiwan, China, and South Africa.  The Taiwan plant will be closed for about two weeks.  The plants in China and south Africa will be closed for one week.

Ford did not say whether the lost production would be made up later, or if it would adjust its global output forecast for 2011.  The current global economy is not only a threat to the average worker, but the disaster on March 11, in Japan (the “just in time” supply center of the global economy),  showed that is bad for big businesses as well.

International

China accuses Japan of Cold War mentality

Chinese officials are upset over statements by Japanese officials, regarding increased military ties to the United States.

Japanese Defense Minister Toshimi Kitazawa said: “In order to maintain the right balance in our relationship with China, we need to also solidify the ties between Japan, the US and South Korea.”

The Chinese view this as a continuation of the Cold War, East vs West: “The Japan-US military alliance, shaped in the Cold War, should not be expanded or aimed at any third party. The expansion of the Japan-US military alliance in the sensitive area of East Asia is harmful to regional peace and stability.”-Zhou Yongsheng, China Foreign Affairs University

Business/Economics, International, U.S.

New York City desperate to sell land to China

New York City’s Economic Development Corporation is hosting a weeklong program, trying to sell property to Chinese companies.

It’s another sign that the economy is not recovering.  Real estate agents can’t sell enough property to U.S. companies, so they’re trying to get the rich Chinese to buy it.

Several Chinese businesses have already opened New York City offices, include the apparel company Li & Wang, and several banks and investment firms.

Business/Economics, International, U.S.

Chinese bankers say dump U.S. dollar, buy other currencies

Several banking officials in China, have stated that they Chinese government needs to “reduce” and “diversify” their foreign currency holdings.

Tang Shuangning, chairman of China Everbright Group said China must reduce its excessive foreign exchange reserves and further diversify its holdings.

Zhou Xiaochuan, governor of China’s central bank, said that China’s foreign exchange reserves “exceed our reasonable requirement”.

Xia Bin, a member of the monetary policy committee of the central bank, said China should further diversify its foreign exchange holdings.

According to western media reports, most of China’s foreign currency holdings are in U.S. dollars.  This is part of why the value of the U.S. dollar hasn’t dropped as far as it should have.  But if the Chinese government listens to its bankers, then the dollar could crash.

When the Chinese bankers say China must reduce its current foreign currency holdings they’re talking about U.S. dollars.  They’re saying the Chinese government has too many, based on how bad the U.S. economy is.

When the Chinese bankers say they want the Chinese government to diversify foreign currency holdings, they mean they want to get rid of U.S. dollars and buy money from countries that have good economies, like Russia, India, South Africa and several South American countries.

 

International, U.S.

Chinese dumping wheels on the U.S. Market

The U.S. International Trade Commission and the Department of Commerce are investigating claims by U.S. companies, that China is dumping steel wheels on the U.S. market.

The claim was filed by the U.S. wheel makers, Accuride Corp and Hayes Lemmerz International Inc.

16 Chinese companies are being investigated for selling their wheels in the United States, for far less than what it cost to make them.  Dumping is a way a company can gain a foot hold in a specific market, by selling their products at huge loses, to push out their competitors. Once that is done the dumping company will increase their prices to make up the difference.